2016 Exemption from Estate Tax

In 2016, the federal estate tax exemption is $5,450,000, which is an increase from the exemption amount of $5,430,00 in 2015. In addition, the lifetime gift tax exemption and generation-skipping transfer (GST) tax exemption will also increase to $5,450,000 in 2016. In other words, as of January 1, 2016, an individual can make a gift of $5,450,000 during life or at death without paying any federal estate or gift tax.